1.

What do you mean by price elasticity of demand?

Answer»

Price elasticity of demand is a measure of the responsiveness of the demand for a good to change in its price. In the words of Prof. Stonier & Hague, “Price elasticity of demand is a technical term used by economists to describe the degree of responsiveness of the demand for a good to a change in its price. It is measured by using the following formula.

PED = (Percentage change in demand for the good/Percentage change in price of the good)



Discussion

No Comment Found

Related InterviewSolutions